AUTHORITY: Implementing and authorized by Section 16-119A of the Public Utilities Act [220 ILCS 5/16-119A].

SOURCE: Adopted at 26 Ill. Reg. 1682, effective February 1, 2002.

SUBPART A: FUNCTIONALLY SEPARATED UTILITY RULES

 

Section 452.10  Applicability

 

An electric utility shall be subject to Subpart A or Subpart B of this Part. Subpart A shall apply to each electric utility conducting operations in Illinois that is not otherwise approved to operate as an Integrated Distribution Company pursuant to Subpart B. Any electric utility subject to Subpart A whose principal service area is not in Illinois shall be exempt from Sections 452.30, 452.35, 452.40, 452.60 and any other Section of Subpart A in which exemption is expressly provided. Subpart B of this Part is an option available to electric utilities that elect to become subject to Subpart B and that are approved to operate as an Integrated Distribution Company pursuant to Subpart B.

 

Section 452.20  Definitions

 

            "Act" means the Public Utilities Act [220 ILCS 5].

 

            "Administrative support" means employees and other persons, equipment and systems used to provide administrative support to both the transmission and distribution system and the generation function of the electric utility. Administrative support includes administrative services (including travel administration, security, printing, graphics, custodial services, secretarial support, mail services, and records management), financial management services (including accounting, treasury, internal audit, tax, and financial reporting and planning), data processing, shareholder services, human resources, employee benefits, regulatory affairs, legal services, lobbying, strategic planning and similar administrative support items.

 

            "Affiliated interest" has the same meaning as in Section 7-101(2) of the Act [220 ILCS 5/7-101(2)].

 

            "Alternative Retail Electric Supplier" or "ARES" has the same meaning as in Section 16-102 of the Act [220 ILCS 5/16-102]. ARES may be singular or plural.

 

            "Ancillary services" means those services specified as ancillary services in each electric utility's delivery services tariff as approved by the Illinois Commerce Commission (Commission).

 

            "Company leadership" means officers, directors, and managers with senior level oversight or governance responsibility (i.e., executive functions) for both the  T&D function and the generation function of the electric utility.

 

            "Delivery services" has the same meaning as in Section 16-102 of the Act [220 ILCS 5/16-102].

 

            "Delivery services employee" means any transmission and distribution function  employee or other person who operates, directs, organizes or plans the provision of delivery services, administers the delivery services tariff, processes or executes delivery services transactions, or performs system design or configuration, system operations or business planning for the provision of delivery services.

 

            "Electric utility" has the same meaning as in Section 16-102 of the Act [220 ILCS 5/16-102].

 

            "Generation function" means all divisions, departments, sections, parts, units and facilities (other than transmission and distribution facilities) used by the electric utility to provide generation services. The generation function includes both the mandatory generation function and the merchant generation function.

 

            "Generation services" or "generating services" means the production, purchase, or marketing for retail sale; or the retail sale, of electric power or energy. Generation services include mandatory generation service and merchant generation service.

 

            "Generation function employee" means any electric utility employee or other person performing work for the generation function.

 

            "Mandatory generation function" means all divisions, departments, sections, parts, units and facilities of the electric utility's generation function engaged in the marketing and retail sale of mandatory generation services.

 

            "Mandatory generation function employee" means any electric utility employee or other person performing work for the mandatory generation function.

 

            "Mandatory generation services" means any services that an electric utility must offer pursuant to Section 16-103(a) and (c), Section 16-107 and Section 16-110 of the Act [220 ILCS 5/16-103(a) and (c), 16-107 and 16-110] and shall not be construed to include any services provided pursuant to tariffs or contracts authorized by Section 9-102.1 of the Act [220 ILCS 5/9-102.1] or services provided pursuant to contracts filed with, and approved by, the Commission under Section 9-201 of the Act [220 ILCS 5/9-201].

 

            "Merchant generation function" means all divisions, departments, sections, parts, units and facilities of the electric utility's generation function engaged in the marketing and retail sale of merchant generation services.

 

            "Merchant generation function employee" means any electric utility employee or other person performing work for the merchant generation function.

 

            "Merchant generation services" means any generation service offered by an electric utility at retail to its customers that is not a mandatory generation service. Merchant generation services include, but is not limited to:

 

            generation services provided pursuant to Sections 9-102.1, 16-106, and 16-116 of the Act [220 ILCS 5/9-102.1, 16-106, and 16-116]; and

 

            any contracts filed with and approved by the Commission pursuant to Section 9-201 of the Act [220 ILCS 5/9-201].

 

            "Non-affiliated ARES" means an ARES that is not an affiliated interest of the electric utility.

 

            "Power purchase option" means the power purchase options set out in Section 16-110 of the Act [220 ILCS 5/16-110] for delivery services customers.

 

            "Principal service area" means the geographic area in which, or customers for which, an electric utility directly uses its transmission or distribution facilities to accomplish the delivery of retail power or energy. An electric utility shall be deemed to have its principal service area in Illinois if either a majority (i.e., more than 50.0%) of the geographic area in which, or a majority of the customers for which, it directly uses its transmission or distribution facilities to accomplish the delivery of retail power or energy is located in Illinois. Notwithstanding any other portion of this definition, this Part shall also apply to any successor of any electric utility subject to the requirements of Section 16-119A of the Act as of December 16, 1997 and to any electric utility that subsequently provides transmission and distribution directly to the geographic area or the retail customers of any electric utility subject to Section 16-119A of the Act as of December 16, 1997.

 

            "Transmission and distribution function" or "T&D function" means all divisions, departments, sections, parts, units, and personnel of the electric utility responsible for transmission and distribution facilities or delivery services. This function includes, without limitation, the provision to any entity of services that are necessary for the transmission and distribution system to function in order to effect the delivery or sale of power and/or energy to retail consumers.

 

            "Transmission and distribution function employee" means any electric utility employee or other person performing work for the transmission and distribution function.

 

Section 452.30  Independent Functioning

 

a)         Except as necessary under Section 452.50 of this Part or required by an order of a state or federal court or administrative agency, an electric utility's transmission and distribution function and its generation function providing generation to Illinois customers shall operate independently of each other.

 

b)         Except as necessary under Section 452.50 of this Part, no generation function employee of an electric utility providing generation services to Illinois customers shall provide delivery services. No transmission and distribution function employee of the electric utility shall provide generation services.

 

c)         Except as necessary under Section 452.50 of this Part, the transmission and distribution function employees and generation services function employees of an electric utility providing generation services to Illinois customers shall not be jointly employed by both the transmission and distribution function and the generation services function.

 

d)         Company leadership and administrative support may be jointly employed by an electric utility's transmission and distribution function and generation function and may provide leadership and  support for both functions. However,  company leadership and administrative support shall not be used, or allowed, by the electric utility to circumvent any provision of Section 452.80, 452.90, 452.100, or 452.110 of this Part.

 

Section 452.35  Physical Separation

 

a)         Delivery services employees shall be physically separated from merchant generation function employees who provide generation services to Illinois customers. This physical separation requirement may be met by:

 

1)         locating delivery services employees in separate secured access office buildings; or

 

2)         constructing and maintaining secured access areas and secured access facilities for delivery services employees within shared office buildings.

 

b)         Physical separation of delivery services employees from mandatory generation function employees shall not be required. In no event, however, shall  mandatory generation services employees be used, or allowed, by the electric utility to circumvent any provision of Sections 452.80, 452.90, 452.100, or 452.110 of this Part. The Commission may require the physical separation of delivery services  employees from mandatory generation function employees if the Commission, taking into account Section 16-119A(c) and (d) of the Act [220 ILCS 5/16-119A(c) and (d)], determines after a hearing upon complaint or on its own motion that:

 

1)         An electric utility has violated any provision of Section 452.80, 452.90, 452.100, or 452.110 of this Part; and

 

2)         Such physical separation would better accomplish the non-discrimination and efficient competition goals of Section 16-119A of the Act [220 ILCS 5/16-119A].

 

c)         Physical separation of transmission and distribution function employees other than delivery services employees from any generation function employees shall not be required. In no event, however, shall such other transmission and distribution function employees be used, or allowed, by the utility to circumvent any provision of Section 452.80, 452.90, 452.100 or 452.110 of this Part. The Commission may require the physical separation of such other transmission and distribution function employees from any or all generation function employees if the Commission, taking into account Section 16-119A(c) and (d) of the Act [220 ILCS 5/16-119A(c) and (d)], determines after hearing upon complaint or on its own motion that:

 

1)         An electric utility has violated any provision of Section 452.80, 452.90, 452.100, or 452.110 of this Part; and

 

2)         Such physical separation would better accomplish the non-discrimination and efficient competition goals of Section 16-119A of the Act [220 ILCS 5/16-119A].

 

Section 452.40  Restricted Physical Access

 

a)         Except as necessary under Section 452.50, or as required by an order of a state or federal court or administrative agency, and in addition to the requirements of Section 452.35(a), no merchant generation function employee who provides generation services to Illinois customers shall be permitted physical access to the electric utility's system control center, system communications facilities, computer systems, information systems, data storage, office space, file cabinets, office equipment or any other facilities, equipment or systems used by the transmission and distribution function  that differs in any way from the access available to non-affiliated ARES. The requirement of this subsection shall work in conjunction with Section 452.35(a) through physical separation or secured access facilities or mechanisms.

 

b)         Physical access by mandatory generation function employees to the electric utility facilities, equipment or systems described in subsection (a) that differs from the physical access provided by the electric utility to non-affiliated ARES shall be permitted. In no event, however, shall mandatory generation function employees circumvent, or be used or allowed by the electric utility to circumvent, any provision of Section 452.80, 452.90, 452.100, or 452.110 of this Part. The Commission may limit or prohibit such physical access if the Commission, taking into account Section 16-119A(c) and (d) of the Act [220 ILCS 5/16-119A(c) and (d)], determines after hearing upon complaint or on its own motion that:

 

1)         An electric utility has violated any provision of Section 452.80, 452.90, 452.100, or 452.110 of this Part; and

 

2)         Such limited or prohibited physical access would better accomplish the non-discrimination and efficient competition goals of Section 16-119A of the Act [220 ILCS 5/16-119A].

 

c)         Physical access by company leadership or administrative support  to the electric utility facilities, equipment or systems described in subsection (a) shall not be restricted. In no event, however, shall company leadership or administrative support  circumvent, or be used or allowed by the utility to circumvent, any provision of Section 452.80, 452.90, 452.100, or 452.110 of this Part.

 

Section 452.50  Emergency Exception

 

a)         In anticipation of impending emergencies and in times of actual emergency affecting the public health and safety or electric system integrity and reliability, electric utilities may take any actions necessary to protect the public and the electric system. If under normal non-emergency circumstances, those actions would constitute violations of this Part, the utility shall file written reports as specified in this Section.

 

b)         An electric utility shall file an initial written report with the Commission within 24 hours after reliance on the authority in subsection (a) notifying the Commission of such action.

 

c)         Within 24 hours after notifying the Commission, the utility shall notify non-affiliated ARES on the Internet site described in Section 452.80(d) of this Part.

 

d)         Within seven days after initiating reliance on the authority in subsection (a), or within two days after terminating reliance on the authority in subsection (a), whichever is later, the electric utility shall file a full written report with the Commission. The full written report shall explain the nature and extent of the emergency, including how and why the emergency arose. This report shall also list and describe each action the electric utility took that, under normal non-emergency circumstances, would constitute a violation of this Part. The initial and full written reports shall be available to the public on an appropriate Internet site.

 

Section 452.60  Identification of Systems Functions and Employee Positions

 

a)         Each electric utility shall designate and specifically identify every division, department, section, part, or unit of the electric utility responsible for its transmission and distribution function. Every such division, department, section, part, unit or portion thereof engaged exclusively in delivery services shall be identified as such.

 

b)         Each electric utility shall designate and specifically identify every division, department, section, part, or unit of the electric utility responsible for its generation function.

 

c)         Each electric utility shall maintain a current list of all transmission and distribution function employee positions by job title and job description. Delivery services employee positions shall be identified as such on the list. Delivery services employees and their direct supervisors shall be identified on the list by name. The current list of transmission and distribution function employee positions shall be available for Commission inspection and shall be made available to the public with names encoded upon written request.

 

d)         Each electric utility shall maintain a current list of all generation function employee positions by job title and job description. Mandatory generation function employee positions and merchant generation function employee positions shall be identified as such on the list. Merchant generation function employees and their direct supervisors shall be identified on the list by name. The current list of generation function employee positions shall be available for Commission inspection and shall be made available to the public, with names encoded, upon written request.

 

e)         Each electric utility shall maintain a current list of all company leadership identifying each employee thereon by name, job title and job description. The current list of company leadership employees shall be available for Commission inspection and shall be made available to the public, with names encoded, upon written request.

 

f)         Each electric utility shall maintain a current list of all administrative support positions by job title and job description. The current list of administrative support positions shall be available for Commission inspection and shall be made available to the public upon written request.

 

g)         Each electric utility shall maintain a current organizational chart of the transmission and distribution function that shall show the official relationship among all transmission and distribution function employee positions, including delivery services employee positions, company leadership positions, and administrative support positions. The current transmission and distribution function organizational chart shall be available for Commission inspection and shall be made available to the public upon  written request.

 

h)         Each electric utility shall maintain a current organizational chart of the generation function that shall show the official relationship among all generation function employee positions, including mandatory generation function employee positions, merchant generation function employee positions, company leadership positions, and administrative support positions. The current generation function organizational chart shall be available for Commission inspection and shall be made available to the public upon written request.

 

Section 452.70  Employee Transfers

 

a)         Electric utility employees engaged in either the transmission and distribution function or the generation function are not precluded from transferring between these organizations provided that the transfer is not used, or allowed, to circumvent any provision of Section 452.80, 452.90, 452.100, or 452.110 of this Part.

 

b)         A transmission and distribution function employee who transfers to the electric utility's generation function shall not provide to the generation function any information that the generation function would otherwise be prohibited from obtaining from the transmission and distribution function under this Part.

 

c)         Employee transfers from the electric utility's transmission and distribution function to its generation function must be recorded in a log. The information to be logged shall include the name of the transferring employee, all job titles involved in the transfer, and the effective date of the transfer. Plural transfers by an employee within a 12-month period, and the reasons for those transfers, shall be entered in a separate section of the log. The entry in the log shall be made within 24 hours after the effective date of the transfer. Entries in the log shall be retained for three years. The log shall be available for Commission inspection and shall be made available to the public, with names encoded, upon written request.

 

Section 452.80  Access to, Disclosure of, or Receipt of, Electric Utility Transmission and Distribution Information

 

a)         The information covered by this Section shall include transmission or distribution construction plans, transmission or distribution abandonment plans, planned transmission or distribution system upgrades, downgrades, or modifications, planned transfer or sale of transmission or distribution facilities, transmission or distribution maintenance or outage plans or schedules, transmission or distribution forced outage data, historic transmission or distribution outage and restoration data, availability of transmission capacity, transmission or distribution facilities ratings, availability of ancillary services, forecasted or scheduled new customer interconnection information, customer emergency curtailment information and any other information that is directly related to the availability or quality of delivery services or the transmission and distribution system.

 

b)         Except as necessary under Section 452.50, or as required by regulatory or judicial order, no electric utility merchant generation function employee providing services to  Illinois customers shall have access to or receive any information described in subsection (a) that is not equally accessible and available to non-affiliated ARES.

 

c)         If any information described in subsection (a) is accessible to or received by a merchant generation function employee in violation of subsection (b), the electric utility shall immediately post that information on the Internet site described in subsection (d). The electric utility shall keep a log listing and describing all such instances. The log shall be available for Commission inspection and shall be made available to the public upon request. Entries in the log shall be retained for three years.

 

d)         Each electric utility subject to this Part shall maintain a public Internet site for the dissemination of information required by this Part. Prior to the commencement of the operation of its Internet site, each such utility shall file with the Clerk of the Comission, and shall serve upon all ARES then certified pursuant to Section 16-115 of the Act [220 ILCS 5/16-115], the address (uniform resource locator) of such site.

 

Section 452.90  Information Provided to the Transmission and Distribution Function by a Non-Affiliated ARES, Another Electric Utility, Customer of Non-Affiliated ARES or Another Electric Utility, or Retail Customer

 

a)         The information covered by this Section shall include any data or information provided to the electric utility's transmission and distribution function by a non-affiliated ARES, another electric utility, a customer of a non-affiliated ARES or another electric utility, or a retail customer.

 

b)         No electric utility generation function employee shall have access to or receive any information described in subsection (a) unless verifiably authorized to do so by the non-affiliated ARES, other electric utility, customer of non-affiliated ARES or other electric utility, or retail customer, or unless required by tariff or by regulatory or judicial order. Nothing in this subsection (b) shall be construed as prohibiting mandatory generation function employees from accessing or receiving information furnished to the transmission and distribution function by an existing customer that is necessary to the continued provision of mandatory generation services to that customer.

 

c)         If any information described in subsection (a) is accessible to or received by a generation function employee of the electric utility in violation of subsection (b), the electric utility shall notify the non-affiliated ARES, other electric utility, customers of non-affiliated ARES or other utility, or retail customer, whose data or information was disclosed, and the Commission's Energy Division Manager or his/her delegate, within 24 hours. The electric utility shall keep a log of all such instances. The log and entries in the log shall be kept confidential unless the Commission, after notice and hearing, determines that the data or information is not entitled to confidentiality. Entries in the log shall be retained for three years. The Commission or the electric utility shall inform the public, upon request, of the number of entries in the log.

 

Section 452.100  Customer Information

 

a)         No electric utility merchant generation function employee shall have access to or receive any  customer-specific billing, usage, or load shape data except as permitted in subsection (b).

 

b)         Upon the verifiable request of a retail customer or of the electric utility's merchant generation function, if it provides verifiable authorization and is acting as the customer's agent, an electric utility merchant generation function shall receive customer-specific billing, usage, or load shape data in the same form and fashion as such information would be provided to non-affiliated ARES in similar circumstances. The merchant generation function shall be charged the same type of reasonable fee for the provision of customer-specific data that the electric utility charges to any non-affiliated ARES for similar customer-specific information under Section 16-122(a) of the Act [220 ILCS 5/16-122(a)].

 

c)         An electric utility's merchant generation function may receive generic information concerning the usage, load shape or other general characteristics of customers by rate classification. Generic information by rate classification, however, shall not be provided to the electric utility's merchant generation function in a discriminatory manner. No preference shall be provided to the electric utility's merchant generation function over non-affiliated ARES that make requests for such generic information by rate class under Section 16-122(b) of the Act [220 ILCS 5/16-122(b)]. The merchant generation function shall be charged the same type of reasonable fee for the provision of generic information by rate classification that the electric utility charges to any non-affiliated ARES for similar generic information by rate classification under Section 16-122(b) of the Act [220 ILCS 5/16-122(b)].

 

Section 452.110  Marketing and Advertising

 

a)         No electric utility shall allow joint advertising or joint marketing by its transmission and distribution function employees and generation function employees, nor may any product or service offered by its merchant generation function be advertised or marketed with any product or service offered by its transmission and distribution function. However, the advertising of mandatory generation services is not prohibited by this Part so long as there is no direct or indirect involvement in such advertising by transmission and distribution function employees.

 

b)         Upon written request by a customer or potential customer, an electric utility's transmission and distribution function employees may accompany generation function employees at a meeting with the customer or potential customer; provided that transmission and distribution function employees are prohibited from requesting the customer's or potential customer's patronage for any generation service. An electric utility's transmission and distribution function shall process all requests for, and schedule and participate in, joint meetings under this subsection in the same manner as it would upon written request from a customer or potential customer of a non-affiliated ARES or another electric utility. Upon violation of the requirements or prohibitions in this subsection, the Commission may prohibit transmission and distribution function employees from accompanying generation function employees at meetings with customers or potential customers.  The penalty shall be in addition to or in lieu of any penalty imposed by the Commission pursuant to Section 452.160 of this Part.

 

c)         Nothing in subsection (a) shall be construed as prohibiting an electric utility's generation  function from using the corporate name or logo of the electric utility or electric utility holding company.

 

d)         Every electric utility shall distribute a copy of Section 452.130 of this Part or such other notice as the Commission may require to each of its customers. The distribution shall occur on the effective date of this Part, or on or before the date on which a customer becomes eligible to take delivery services, whichever is later.

 

Section 452.120  Tying

 

No electric utility shall tie, as defined by State and federal anti-trust laws:

 

a)         the provision of any delivery services to the taking of any goods and services from the electric utility's generation function; or

 

b)         the provision of any mandatory generation service to the taking of any other product or service offered by the utility.

 

Section 452.130  Non-Discriminatory Provision of Delivery Services and Ancillary Services in Transactions Involving the Generation Function

 

a)         Electric utility transmission and distribution function employees shall strictly enforce all tariff provisions relating to delivery services (regardless of whether dealing with the electric utility's generation function, affiliated interests, or non-affiliated ARES) if these tariff provisions do not provide for the use of discretion.

 

b)         If provisions of delivery services tariffs allow for discretion, electric utility transmission and distribution function employees shall apply these tariff provisions in a fair, impartial and non-discriminatory manner. Similarly situated users and potential users of delivery services shall be treated equally.

 

c)         An electric utility shall not, through its tariffs or otherwise, give preference to retail power sales made on behalf of the customers of its generation function over the interests of any other retail customer in matters relating to delivery services or tariffed ancillary services. These matters shall include, but not be limited to, delivery services price, delivery services quality, curtailments, interconnections, service restoration, scheduling, priority, balancing, and ancillary services availability. All requests for delivery services shall be processed in a non-discriminatory manner.

 

d)         If an electric utility offers or attributes a rate discount, rebate, or fee waiver on delivery services or delivery-service related, tariffed ancillary services to its generation function or retail customers of its generation function, then, at the same time, it shall offer the same discount, rebate, or fee waiver to all similarly situated ARES or customers of similarly situated ARES. The electric utility shall maintain a log of all discounts, rebates, or fee waivers granted to its generation function or for retail customers of its generation function. The entry in the log shall be made within 24 hours after the delivery services or ancillary services transaction commences. The entry in the log shall be maintained for one year after the discount, rebate, or fee waiver expires. The log shall be available for Commission inspection. The log shall be made available to the public upon written request.

 

e)         Merchant generation function employees shall not state or imply to any person or entity unaffiliated with the electric utility that they have access to, or information about, delivery services that is unavailable to ARES or retail customers, nor shall any utility employee state or imply that delivery services provided in conjunction with the utility's generation services will be superior to the delivery services provided to the customers of ARES.

 

Section 452.135  Cross-Subsidization

 

a)         No electric utility shall use public utility business to subsidize non-public utility business. Accordingly, the electric utility shall comply with the requirements of the Commission's rule regarding accounting for non-public utility business of electric utilities (83 Ill. Adm. Code 416), the Uniform System of Accounts (83 Ill. Adm. Code 415), and orders of the Commission under Section 7-102 of the Act [220 ILCS 5/7-102] that may be applicable.

 

b)         No electric utility shall use delivery services to subsidize generation services. For this purpose, each electric utility shall submit to the Manager of Accounting of the Commission, as part of its implementation plan required under Section 452.170 of this Part, written guidelines for allocating revenues and charges between delivery services and generation services. Each electric utility shall maintain books and records for generation services and delivery services consistent with the form specified in 83 Ill. Adm. Code 416.10(b).

 

c)         Each electric utility shall conduct a biennial internal audit of the transactions addressed in subsection (b). These audits shall test the compliance with that subsection with the written guidelines submitted to the Manager of Accounting of the Commission, with any applicable Commission orders, and with 83 Ill. Adm. Code 415. The audits shall include written reports of conclusions and associated workpapers that shall be available to the Commission Staff for review. The first internal audit shall be submitted to the Manager of Accounting of the Commission on or before December 1, 2002. Succeeding audit reports shall be submitted to the Manager of Accounting of the Commission on or before December 1 of each succeeding even numbered year.

 

Section 452.140  Waivers

 

a)         Any electric utility subject to this Part that uses its transmission or distribution system to directly provide generation services to 50,000 or fewer retail customers in Illinois may petition the Commission for waiver of Section 452.30, 452.35(b) and (c), 452.40, 452.60, 452,70, 452.80, 452.90, 452.100 or 452.170 of this Part. The petition must include a demonstration of the following:

 

1)         that the electric utility does not own, operate, or control power generation resources;

 

2)         that no affiliate of the electric utility owns, operates, or controls power generation resources;

 

3)         that the electric utility provides only mandatory generation services;

 

4)         that any power and energy provided to customers in the electric utility's Illinois service area is obtained entirely through wholesale purchases at tariffs approved, or allowed into effect, by the Federal Energy Regulatory Commission;

 

5)         that no power and energy provided to customers in the electric utility's Illinois service area is obtained from an affiliated interest; and

 

6)         that the electric utility employs a Commission-approved fuel adjustment clause or similar mechanism to recover costs of providing mandatory generation services.

 

b)         In evaluating any petition, the Commission shall assess the effect of the provisions of this Part for which a waiver is requested on the cost and reliability of service of the electric utility and the objective of Section 16-119A of the Act [220 ILCS 5/16-119A] to prevent undue discrimination and create or promote efficient competition. The continued effectiveness of any waiver obtained under this Section shall be conditioned upon the electric utility's continual compliance with subsections (a)(1) through (a)(6). At any time that the Commission finds, upon complaint or on its own motion, that the electric utility no longer satisfies the requirements of subsections (a)(1) through (a)(6), the Commission may rescind the waiver granted.

 

Section 452.150  Complaint Procedures

 

Complaints alleging violations of this Part shall be filed pursuant to 83 Ill. Adm. Code 200.

 

Section 452.160  Penalty Provisions

 

a)         Upon complaint or on the Commission's own motion, the Commission may conduct an investigation of an electric utility's actions under any Section of this Part. The Commission may, after notice and hearing:

 

1)         order an electric utility to cease and desist or correct any violation of, or nonconformance with, any provision of this Part;

 

2)         require an electric utility to make due reparations or refunds as permitted by statute;

 

3)         impose financial penalties for violations of, or non-conformance with, the provisions of this Part as permitted by statute;

 

4)         take other remedial and preventive action as permitted by statute, including any action described in other Sections of this Part.

 

b)         The remedies shall be cumulative and may be imposed in addition to other remedies described in this Part.

 

Section 452.170  Implementation Plans

 

a)         Each electric utility shall file with the Commission, before May 31, 2002, written plans and procedures describing how the electric utility will implement, and achieve compliance with, this Subpart.

 

b)         Within 45 days after an electric utility files its implementation plans and procedures with the Commission pursuant to subsection (a), the Commission shall approve the implementation plans and procedures as filed or initiate a hearing to investigate modifications to the implementation plans and procedures. If the Commission takes no such action within 45 days, the implementation plans and procedures filed by the electric utility shall be deemed approved. If the Commission initiates a hearing to investigate modifications to the implementation plans and procedures filed by the electric utility, intervention in accordance with 83 Ill. Adm. Code 200 shall be permitted. After the hearing, the Commission shall approve the implementation plans and procedures as filed or as modified by the Commission. In any order entered pursuant to this subsection, the Commission shall set forth its reasons for approving or modifying implementation plans and procedures. Within 60 days from the date of a final Commission order approving its implementation plans or procedures and modified plans and procedures, each electric utility shall be in full compliance with that order.

 

c)         At least 45 days before the effective date of a proposed revision to its approved implementation plans and procedures,  an electric utility shall file the proposed revision with the Commission for approval. Within 45 days after an electric utility files revisions to its approved implementation plans and procedures with the Commission, the Commission shall approve the revisions as filed or initiate a hearing to investigate modifications to the revisions. If the Commission takes no action within 45 days, the revisions filed by the electric utility shall be deemed approved. If the Commission initiates a hearing to investigate modifications to the revisions filed by the electric utility, intervention in accordance with 83 Ill. Adm. Code 200 shall be permitted. After the hearing, the Commission shall approve the revisions as filed or as modified by the Commission. In any order entered pursuant to this subsection, the Commission shall set forth its reasons for approving or modifying any revisions filed by the electric utility.

SUBPART B: INTEGRATED DISTRIBUTION COMPANY RULES

 

Section 452.200  Definitions

 

            "Advertising" means any communication through any medium, except direct (e.g., in-person or telephonic) contact, for the purpose of requesting or retaining patronage from a customer or prospective customer.

 

            "Delivery services" has the same meaning as in Section 16-102 of the Act [220 ILCS 5/16-102].

 

            "Retail Electric Supply Service" means the retail sale of electricity, whether bundled or unbundled.

 

            "Integrated Distribution Company" or "IDC" means an electric utility that has completed implementation of an approved implementation plan pursuant to Section 452.220 of this Subpart B.

 

            "Marketing" means direct contact with a customer or a prospect for the purpose of requesting or retaining patronage.

 

            "Permissible Integrated Distribution Company Service" means any service that an Integrated Distribution Company is allowed to offer pursuant to Subpart B of this Part.

 

            "Transmission and distribution service" means any service provided by an electric utility's transmission and distribution system.

 

            "Transmission and distribution system" has the same meaning as in Subpart A of this Part.

 

            "Value-added transmission and distribution services" means services provided by the electric utility's transmission and distribution function that are not necessary to the operation of that function.

 

Section 452.220  Integrated Distribution Company Implementation Plan

 

a)         To seek Commission approval to operate as an Integrated Distribution Company, an electric utility shall file a written plan by which it will implement, and affirm its commitment to comply with, the provisions of Subpart B before May 31, 2002. The implementation plan shall be sufficiently detailed so that the Commission can reasonably ascertain the systems, policies and practices that the electric utility will use to satisfy each of the requirements in Subpart B.

 

b)         Within 45 days after an electric utility files an implementation plan with the Commission pursuant to subsection (a), the Commission shall approve, reject, or initiate a hearing to investigate the implementation plan. If the Commission takes no action within 45 days, the implementation plan shall be deemed approved. If the Commission initiates a hearing to investigate the implementation plan, intervention in accordance with 83 Ill. Adm. Code 200 shall be permitted. After the hearing, the Commission shall approve the implementation plan as filed or as modified by the Commission, or reject the implementation plan. In any order entered pursuant to this subsection, the Commission shall set forth its reasons for approving or rejecting an implementation plan.

 

c)         In any order rejecting an implementation plan, the Commission shall specify the date by which an electric utility shall be in compliance with Subpart A. Within 45 days after the entry of a final order approving an implementation plan, or within 45 days after the implementation plan is permitted to go into effect without a Commission order pursuant to subsection (b), an electric utility shall be in full compliance with all requirements of Subpart B.

 

d)         If the utility rejects any modifications made to an implementation plan by the Commission, it shall notify the Commission of its rejection within 10 days after the entry of the final order and submit an implementation plan pursuant to Section 452.170 within 45 days after the entry of a final order or within 45 days after a denial of any applications for rehearing, whichever is later.

 

e)         An electric utility may at any time elect to no longer qualify as an Integrated Distribution Company. An electric utility making such an election shall immediately file an implementation plan pursuant to Section 452.170 for Commission approval. Upon the filing of such a plan, an electric utility shall be subject to all requirements of Subpart A of this Part.

 

f)         Each IDC shall file with the Commission revisions to an approved implementation plan within 7 days after revision or at such time as designated by the Commission. The Commission may initiate a proceeding to disallow or modify any revision; in that proceeding, the burden shall be upon the IDC to demonstrate that the revision is consistent with the provisions of this Subpart B.

 

Section 452.230  Permissible and Impermissible Integrated Distribution Company Services

 

a)         An Integrated Distribution Company shall provide all tariffed transmission and distribution services, including delivery services, and all tariffed retail electric supply services required by the Act. An IDC may initiate experiments for transmission and distribution services and enter into contracts for load curtailment and interruption, provided that the experiments and contracts are entered into pursuant to a tariff filed with the Commission. An IDC also may enter into contracts for value-added transmission and distribution services and for the provision of start-up and auxiliary services to qualifying facilities, as defined and required by 83 Ill. Adm. Code 430.

 

b)         An IDC shall not offer or provide any non-tariffed retail electric supply services or any non-tariffed transmission and distribution services, except as provided in subsection (a) of this Section. An IDC shall not, notwithstanding Sections 16-102, 16-106, 16-116(b), and 9-102.1 of the Act [220 ILCS 5/16-102, 16-106, 16-116(b), and 9-102.1], offer or enter into contracts for the provision of any retail electric supply service, unless required by tariff, or engage in any non-tariffed billing and pricing experiments beyond those contracts and experiments in existence on February 1, 2002. An IDC shall not renew, extend, or renegotiate any existing contract for any retail electric supply service, unless the IDC is required by tariff to renew or extend or the IDC is contractually bound to renew, extend, or renegotiate at the customer's option and the customer has exercised its option. At the request of the Commission, an IDC shall make available for inspection by the Commission any or all existing contracts for the provision of any retail electric supply service for verification purposes. The Commission shall treat all such contracts confidentially and shall enter the contracts into the record in any proceeding before the Commission subject to a reasonable confidentiality agreement. An IDC also shall not offer an experiment in existence on February 1, 2002 to any customer after February 1, 2002.

 

Section 452.240  Advertising, Marketing, and Customer Retention Efforts

 

a)         An Integrated Distribution Company shall not promote, advertise or market with regard to the offering or provision of any retail electric supply service.

 

b)         The advertising and marketing prohibition of subsection (a) shall not preclude an IDC from:

 

1)         advertising or marketing permissible IDC services other than retail electric supply  services;

 

2)         using the electric utility company corporate name and logo in connection with the offering or provision of permissible IDC services;

 

3)         engaging in advertising or marketing generally promoting the public image and good will of the IDC as a provider of transmission and distribution services;

 

4)         meeting its obligations for consumer education programs as set forth in Section 16-117 of the Act [220 ILCS 5/16-117], or otherwise engaging in legitimate consumer education efforts; or

 

5)         meeting the customer notification requirements specified in Section 16-110 [220 ILCS 5/16-110] for the power purchase option.

 

c)         No IDC employee or agent shall state or imply that access to or quality of service for delivery of electricity is, or will be, better if the customer retains, switches to, or otherwise obtains any retail electric supply service from the IDC.

 

d)         No IDC employee or agent shall affirmatively prompt customer inquiries about the quality of the IDC's retail electric supply services. No IDC shall disparage the quality of an alternative retail electric supplier's services.

 

e)         No IDC employee or agent shall affirmatively act to retain or obtain a customer for any retail electric supply service offered or provided by the IDC.

 

Section 452.250  Integrated Distribution Company Rate and Price Conditions

 

An Integrated Distribution Company shall not change its price for any tariffed services allowed in Section 452.230(a) pursuant to Section 16-111(f) of the Act [220 ILCS 5/16-111(f)], but may change prices for services in the manner provided in Article IX of the Act [220 ILCS 5/Art. IX], and as provided in  Section 16-111(a) of the Act [220 ILCS 5/16-111(a)].

 

Section 452.260  Information Provided to the Integrated Distribution Company by an Affiliated or Non-Affiliated Alternative Retail Electric Supplier, Another Electric Utility, Customer of Affiliated or Non-Affiliated Alternative Retail Electric Supplier or Another Electric Utility, or Retail Customer of the Integrated Distribution Company

 

a)         The information covered by this Section shall include any data or information provided to the IDC in its role as a provider of transmission and distribution services by an affiliated or non-affiliated alternative retail electric supplier, another electric utility, or the customer of an affiliated or non-affiliated alternative retail electric supply or another electric utility, or retail customer of the IDC.

 

b)         No IDC employee shall use the information described in subsection (a) to sell, promote, market or advertise any retail electric supply service or to attempt to obtain or retain any customer for any retail electric supply service; provided that information received from a retail customer of the IDC that is necessary to the continued provision of  retail electric supply service to that customer may be used by the IDC for that purpose.

 

Section 452.270  Tying

 

An Integrated Distribution Company shall not tie, as defined by state and federal anti-trust laws, the provision of any tariffed service to the taking of any other product or service offered or provided by the IDC.

 

Section 452.280  Integrated Distribution Company Transmission and Distribution Services

 

a)         All requests for transmission and distribution services shall be processed in a non-discriminatory manner.

 

b)         An Integrated Distribution Company shall strictly enforce all tariff provisions relating to transmission and distribution services if these tariff provisions do not provide for the use of discretion.

 

c)         If provisions of transmission and distribution services tariffs allow for discretion, an IDC shall apply these tariff provisions in a fair, impartial and non-discriminatory manner. Similarly situated transmission and distribution services users or potential transmission and distribution services users shall be treated equally.

 

d)         An IDC shall not discriminate in matters relating to curtailment, interconnection, service restoration, repair work, distribution upgrading, scheduling, priority, balancing, or transmission and distribution services availability, price or service quality.

 

e)         If an IDC offers or attributes a rate discount, rebate, or fee waiver on delivery services or other transmission and distribution services to customers of its permissible retail electric supply services, it shall also offer the same discount, rebate, or fee waiver to all alternative retail electric suppliers or customers of alternative retail electric suppliers. The IDC shall maintain a log of all discounts, rebates, or fee waivers granted. The entry in the log shall be made within 24 hours after the transmission and distribution services transaction commences. The entry in the log shall be maintained for one year after the discount, rebate, or fee waiver expires. The log shall be available for Commission inspection. The log shall be made available to the public upon written request.

 

Section 452.290  Emergency Exception

 

a)         In anticipation of impending emergencies and in times of actual emergency affecting the public health and safety or electric system integrity and reliability, an Integrated Distribution Company may take any actions necessary to protect the public and the electric system. If under normal non-emergency circumstances, those actions would constitute violations of this Subpart, the IDC shall file written reports as specified in this Section.

 

b)         Within 24 hours after initiating reliance on the authority in subsection (a), an IDC shall:

 

1)         file an initial written report with the Commission, describing, and stating the general reasons for, the action; and

 

2)         notify non-affiliated ARES on the Internet site described in Section 452.80(d) of this Part.

 

c)         Within seven days after initiating reliance on the authority in subsection (a), or within two days after terminating reliance on the authority in subsection (a), whichever is later, the IDC shall file a full written report with the Commission, explaining the nature and extent of the emergency and how and why the emergency arose. This report shall also list and describe each action the electric utility took that, under normal non-emergency circumstances, would constitute a violation of this Subpart. The initial and full written reports shall be available to the public on the Internet site described in Section 452.80(d) of this Part.

 

d)         Nothing in this Section shall preclude the Commission from investigating, upon its own motion, or upon complaint by any person pursuant to Section 452.310 of this Part, whether the actions or omissions of an IDC pursuant to subsection (a) were reasonably related to an impending or actual emergency affecting the public health and safety or electric system integrity or reliability. If, after a hearing, no reasonable relationship is found, the Commission may impose one or more penalties as authorized by Section 452.320 of this Part.

 

Section 452.300  Cross-Subsidization

 

No Integrated Distribution Company shall use public utility business to subsidize non-public utility business. Accordingly, the IDC shall comply with the requirements of the Commission's rules regarding accounting for non-public utility business of electric utilities (83 Ill. Adm. Code 416), the Uniform System of Accounts (83 Ill. Adm. Code 415), and orders of the Commission under Section 7-102 of the Act [220 ILCS 5/7-102] as may be applicable.

 

Section 452.310  Formal Complaint Procedures

 

Complaints alleging violation by an Integrated Distribution Company, its employees or agents of any provision of Subpart B shall be filed pursuant to 83 Ill. Adm. Code 200.

 

Section 452.320  Enforcement and Penalty Provisions

 

a)         Upon complaint pursuant to Section 452.310 of this Part, or on the Commission's own motion, the Commission may, after notice and hearing:

 

1)         order an Integrated Distribution Company to cease and desist, or correct, any violation of, or nonconformance with, any provision of Subpart B;

 

2)         require an IDC to make due reparations or refunds as permitted by statute;

 

3)         impose financial penalties for violations of, or non-conformance with, any provision of Subpart B as permitted by statute;

 

4)         take other remedial and preventive action as permitted by statute.

 

            Such remedies shall be cumulative.

 

b)         Upon finding that an IDC has committed, within any five year period, three violations of any provision of Subpart B, the Commission may determine that the electric utility no longer qualifies as an IDC. The Commission may direct the electric utility to immediately file with the Commission an implementation plan to comply with Subpart A. The Commission shall evaluate any such implementation plan under the provisions of Section 452.170(b).

 

c)         Multiple violations arising from the same facts shall be regarded as a single violation for purposes of reaching the three-violation threshold established in subsection (b). Each violation arising from different facts shall be regarded as a single violation for purposes of reaching the three-violation threshold established in subsection (b). Plural factual allegations may be included in a single complaint or investigation.

 

d)         The remedies set forth in subsections (a) and (b) shall be cumulative.

 

Section 452.330  Integrated Distribution Company Instruction

 

An Integrated Distribution Company shall instruct its affected employees and agents about the requirements of Subpart B and how to apply Subpart B in the work place.